GFG GFG Resources Inc

egX Group Inc. (TSX VENTURE:GFG) - 

First and foremost, I would like to thank our shareholders for your support to
date. The entire team at egX continues to work hard towards building a company
that we can all be proud to be a part of. Building value for our shareholders in
the long term continues to be our primary goal. 


We are pleased with the progress egX Group is making towards achieving the goals
we set out to accomplish. Our Company vision is two-fold. One is to facilitate
the securitization of real estate through securities marketplaces focused on the
listing and trading of real estate securities. The other is to profit from being
a publicly traded, securities marketplace - a relatively new industry sector
created as securities exchanges began to demutualize and become for-profit
entities within the last ten years.


As we had anticipated, the securitization of real estate around the world is
increasing. Years ago, we knew that launching a securities exchange for real
estate from the ground floor would be an enormous undertaking. However, the
rewards of being able to participate in a multi-trillion dollar global market
far outweighed the challenges. There are currently only 22 securities exchanges
publicly traded. The Dow Jones Global Exchanges Index has gained over 800% since
it was created at the beginning of this decade. egX Group, after years of hard
work by many people, has positioned itself to take advantage of this opportunity
as we move towards launching egX Canada in 2008 and expanding into international
jurisdictions in the future.


We have succeeded in assembling an impressive team of professionals and in
developing an environment that will support the Company in achieving its
objectives. Launching a securities exchange for real estate is capital intensive
and has many components, including: deploying a trading platform, working with
all securities industry participants (vendors, dealer firms, regulators,
clearing and settlement services and surveillance services), and working with
numerous parties involved in the acquisition/disposition, development and
financing of real estate projects. 


To date we have been able to fund the operations of the Company through the
invaluable support from individuals and companies that believe in the future of
egX Group. After years of development and associated costs, the success of egX
Group as it begins to generate revenue in 2008 will depend on the continued
support of our shareholder base and our ability to seek new strategic partners
to help achieve our goals. 


During 2007 we achieved a number of key milestones. In March, we received a
recognition order from the British Columbia Securities Commission (BCSC) to
operate egX Canada as an exchange. The Company also entered into an agreement
with OMX Group to provide an electronic trading platform for egX Canada. 


In June and August respectively, we applied to the Ontario Securities Commission
(OSC) and the Quebec Autorite des Marches Financiers (AMF) for similar
regulatory recognition. As part of the formal application procedure, we
submitted responses to the OSC's comments in December, 2007. We continue to work
closely with the OSC and AMF to complete the applications in a timely fashion.


In addition to launching egX Canada and as part of our corporate strategy of
deploying egX Marketplaces in key international financial centres under the egX
brand, we entered into an agreement with a business consortium from Europe.
Under this agreement, egX Group agreed to conduct a Design Study to determine
the commercial, functional, regulatory and technical requirements to establish
an egX Marketplace for the listing and trading of real estate securities in
Ireland and the United Kingdom. Representatives of the business consortium,
funded the Design Study which began in July, and the fees paid will be fully
credited against the cost of an operating licence for an egX Marketplace. We
will be meeting with representatives from the business consortium next month to
finalize the Design Study documentation and determine how we can jointly
establish the egX Marketplace. 


In October, egX Canada reached an agreement for the provision of trade clearing
and settlement services with Clearing and Depository Services Inc. (CDS). This
agreement with CDS satisfied a pre-operating condition contained in the
recognition order issued by the BCSC. As we progress into 2008, we expect to
satisfy the remaining pre-operating conditions and expand our operations to
commence the revenue generation phase of the Company's development.


Our team has been working diligently with OMX personnel to establish our trading
environment and we anticipate being able to transition into the testing phase
with securities industry participants in Q2. We have also identified independent
third parties capable of providing a report on egX's systems. This will also
satisfy a pre-operating condition and we will be able to initiate this process
in Q2. We have been coordinating efforts with a market regulation services
provider and expect to finalize an agreement for the provision of marketplace
regulation services in the near term. All these steps will bring us closer to
launch. 


Identifying issuers for egX Canada is a process that mirrors the timetable
associated with testing the trading platform with securities industry
participants. In this regard, we continue to meet with interested parties
associated with various real estate projects. We expect potential issuers will
be able to initiate listing applications in Q2. On completion of the listing
process with issuers, dealer firms and applicable securities commission(s), egX
Canada will launch for trading. 


egX Group possesses a solid business model and experienced personnel with the
dedication to achieve the Company's vision. We strongly believe egX Group is
poised to emerge and generate a market value that better reflects
accomplishments achieved by the Company, imminent key milestones and the truly
unique opportunity presented.


For more detailed information on the business operations of the Company, we
encourage you to review our newly released corporate website www.egXworld.com,
and the soon to be re-released egX Canada website www.egXCanada.com. 


On behalf of the team at egX Group we wish you the best for 2008 and we thank
you for your continued support.


Sincerely,

Leo Chamberland, President 

egX Group Inc.

"Greatest monetization in the history of the world" - "If you own an office
building and go public, offering shares on your property, you have 'monetized'
the asset. You have realized cash and turned a physical thing into a tradeable
security. That tradeable security is in high demand these days, because people
want that steady income from real estate. And the monetization of real estate is
the process of meeting that demand."


Excerpt from the article "Sam Zell Speaks" by Chris Mayer in Agora Financial's
The Rude Awakening (www.agorafinancial.com).


Samuel 'Sam' Zell is a U.S. real estate entrepreneur. With an estimated net
worth of US$6 billion, he is ranked as the 52nd richest American by Forbes.

GFG Resources (TSXV:GFG)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024

GFG Resources (TSXV:GFG)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024